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Surrender Value in LIC Limited Premium Endowment Plan - Check your surrender value
Surrender Value in LIC Limited Premium Endowment Plan - Check your surrender value
Apr 24, 2018 | 1600 VIEWS

Guaranteed Surrender Value in LIC Limited Premium Endowment Plan - Table No. 830

If for some reason, you wish to surrender your LIC Limited Premium Endowment Plan, the tables below will show the amount that will be returned back to you. You will need the Surrender Value Factors which are mentioned below to know the exact amount. You get back a part of the premium paid by you. So here is how it works. 

If only 2 years’ premiums have been paid - Nothing is paid back to you. For the rest, use the table below.

Note - The tax components and the premiums for riders are not returned if you surrender this plan. The % is on the basic premium without tax.


Guaranteed Surrender Value Factors for the premiums paid
 
Surrender Year Policy Term (years)
12 16 21
1 0.00% 0.00% 0.00%
2 30.00% 30.00% 30.00%
3 30.00% 30.00% 30.00%
4 50.00% 50.00% 50.00%
5 50.00% 50.00% 50.00%
6 50.00% 50.00% 50.00%
7 50.00% 50.00% 50.00%
8 57.50% 53.75% 52.31%
9 65.00% 57.50% 54.62%
10 72.50% 61.25% 56.92%
11 80.00% 65.00% 59.23%
12 80.00% 68.75% 61.54%
13   72.50% 63.85%
14   76.25% 66.15%
15   80.00% 68.46%
16   80.00% 70.77%
17     73.08%
18     75.38%
19     77.69%
20     80.00%
21     80.00%


Surrender Value Factors for the Bonus accrued
 
Surrender Year Policy Term (years)
12 16 21
1 0.00% 0.00% 0.00%
2 0.00% 0.00% 0.00%
3 18.60% 17.58% 15.93%
4 19.18% 17.66% 16.22%
5 19.93% 17.85% 16.58%
6 20.85% 18.16% 17.03%
7 21.99% 18.60% 17.58%
8 23.38% 19.18% 17.58%
9 25.05% 19.93% 17.66%
10 27.06% 20.85% 17.85%
11 30.00% 21.99% 18.16%
12 35.00% 23.38% 18.60%
13   25.05% 19.18%
14   27.06% 19.93%
15   30.00% 20.85%
16   35.00% 21.99%
17     23.38%
18     25.05%
19     27.06%
20     30.00%
21     35.00%


Let us understand how this works with the help of an example.

Suppose Raghav has taken the Limited Premium Endowment Plan with a cover of Rs. 3,00,000 and a policy term of 12 years. His Annual Premium was Rs. 29,944 + taxes. 

He paid the premium for 7 years. Now due to a financial crunch, he decided to surrender the plan. He gets a Surrender Value for the Premium Paid and for the Bonus accrued the plan. This is the amount he will get on surrendering the plan.

Premium Paid so far = 7 x 29,944 = Rs. 2,09,608
Surrender Value Factor for premiums = 50% (marked in the blue in the 1st table)
Guaranteed Surrender Value of Premiums in LIC Limited Premium Endowment Plan after 7 years = Rs. 2,09,608 x 50% = Rs. 1,04,804 (A)

Bonus Accrued in 7 years = 7 x 12,000 = Rs. 84,000
Surrender Value of Bonus after 7 years = 21.99%
Guaranteed Surrender Value of Bonus in LIC Limited Premium Endowment Plan after 7 years = Rs. 84,000 x 21.99% = Rs. 18,472 (B)


Total Surrender Value after 7 years = (A) + (B) = Rs.1,04,804 + 18,472 = Rs. 1,23,276

This is the Guaranteed Surrender Value. A Special Surrender Value maybe paid by LIC - this value can only be known at the time of actual surrender.

To know more about how this plan works - Read the LIC Limited Premium Endowment Plan Review.

In case you have any questions on this, please drop a comment and we will get back to you.

Deepak Yohannan
Deepak Yohannan is the CEO of MyInsuranceClub. He enjoys writing on Personal Finance and contributes regularly on sites like Reuters & Moneycontrol. He is a strong proponent of online insurance and is often found pointlessly babbling about it!

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